Indianapolis Times, Indianapolis, Marion County, 17 October 1944 — Page 8
: Industry Asks Tax ‘Break’
To Improve Its Equipment
’ -
(Continued From Page One)
managements should be permitted to use their own judg‘ment in establishing depreciation rates against different
forms of capital assets.” - But present law gives
the United States treasury
= “very wide authority to substitute its judgment for the “judgment of business managements. And the treasury
has been much more in ‘terested in immediate tax ._yevenue — in collecting as much as it can from the profits of industry in any given year—than in encouraging industry to become a source of larger tax revenues for future years. “As a result, Mr. Kaiser and many other authorities = say, tréasury depreciation policies have strongly discouraged the buying of new machinery, the replacement of inefficient machinery, the progress of technology, the marketing of capital goods, and the employment of workers, ” » - WHAT is depreciation? When a manufacturing company buys a machine it acquires a capital asset—a piece of property that will wear out in time, that will lose usefulness and value as it ages, and that should be replaced when, or before, it becomes obsolete and useless. Federal tax law recognizes this fact. It permits the company to depreciate the machine for tax purposes — to deduct each year from the profit figure on which it must pay taxes a percentage of the machine's cost until, finally, the total deductions equal the total cost. The law authorizes the treasury’s commissioner of internal revenue to allow “reasonable” percentage depreciation
8 8 =
SUPPOSE the machine costs $100,000 and the depreciation rate allowed is 33 1-3 per cent a year. Then, in three years the company will have saved the federal tax of $100.000 and can, if it wishes, apply the money saved toward purchase of a new machine, But suppose the internal revenue commissioner says the depréciation rate can be only 10, or 7%, or 5 per cent a year. Then, It will take the company 10, or 15, or 20 years to save the federal tax on $100,000. Or, to put it another way, the government will have refrained from collecting the tax on $100,000, but over a period of 10, 15 or 20 years, instead of over & period of only three years, 3 ® 8» : IN THE great majority of cases the internal revenue commis sioner does insist on a much lower depreciation rate than the taxpayer thinks desirable. To huge established corporations with large cash. reserves and many diversified sources of inSome hal. often 1s. not 3. serio ~ matter. But to smaller, newer companies, especially if they would have to borrow money to buy ma- - chinery, it can be a tremendous handicap. It induces them to postpone or forego the purchases of new machines, to use old ones Jong after they have become inefficient. Thus it bars them from opportunities to make and sell more goods, employ more people, earn larger profits and pay larger dividends—in short, to create new wealth from which eventually the government could collect more revenue. An interview with Mr, Kaiser, to be published tomorrow, will explain why this is so,
ONE OUT OF THREE GETS TELEPHONE
NEW YORK, Oct, 17 (U., P)— The Bell Telephone system, under restricted production, can supply only one out of three requests for telephones, Walter 8. Gifford, president of American Telephone & Telegraph Co., said today. Gifford’s disclosure was made in A. T. & T’s earnings report for the September quarter, which showed that the company failed by 12 cents a share to cover the period's avidend requirements.
0 DUS DIAMOND RINGS
yi a i
Rul L L143
LINOLEUM
He 8 Ft, 9 Ft, 12 Ft, Widths ‘Large Selection of Inlaid
|
~ ~
21
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.! 3
WHAT HAPPENET PROFITS
N.Y. T0 LONDON
12-Hour Trip Envisaged by American Airlines in Plea to CAB.
WASHINGTON, Oct. 17 (U. P.) — Travelers in the post-war period could fly from New York to London in less than 12 hours at a cost of $235 under a plan envisaged by American Airlines. In support of its application for a North Atlantic route to Europe, American filed with the civil aeronautics board the following schedule of fares: New York to London, $235; Chicago to London, $271.55; Detroit to
$224.05; Ft. Worth-Dallas, Tex., to | London, $315.60, and from Los Angeles to London, $373.85, to go on to Paris, it would cost an additional $15. Eleven Seek Route
A. N. Kemp, president of American, testified that with the use of
to Paris, including stops. The fastest time from Boston to London would be 10 hours and 44
12 hours and 19 minutes. .In 14 hours and 46 minutes, a passenger could fly’ from Chicago to London, and it would require 14 hours and 23 minutes to reach London from Detroit. Seven airlines, one steamship company, and three newly organized companies, are applying for North Atlantic routes to Europe, Asia, North: Africa and the Middle East. Only Pan American Airways provided trans-Atlantic commercial service before the war, * °°
LEND-LEASE AIDS WHEAT FUTURES
CHICAGO, Oct. 17 (U. P). Grain futures turned firm after a steady opening on the board of trade today, influenced by prospects of heavy lend-lease flour buying tomorrow, At 11 a. m. wheat was up % to 15 cent a bushel, corn up % to %, oats up % to %; rye up % to 1%, and barley unchanged to off %. Trading held confined to light volume in all pits. Government bidding for flour, estimated at 560,000
{sacks, combined with anticipated
business from large eastern chain bakers, and army and navy orders
lifted wheat prices in a tight market.
BLOOMINGTON RCA UNION IS CERTIFIED
WASHINGHON, Oct. 17 (U. P).— The national labor relations today certified the International Brotherhood of Electrical Workers (A. F. of L.) as the collective bargaining
|agency for production and main-
tenance workers of the R. C. A. VicAmerica at Bloomington, Ind.
bargaining election be held within 30: days for employees of the Sunshine Farms branch of the Sherman White Co. of Lafayette, Ind. upon petition of local 453 of the Chauffers, Teamsters and Helpers Union (A. F. of L.).
VOTE CAPITAL INCREASE
BRADFORD, Pa. Oct. 17 (U. P.). —Stockholders of Dresser Manufacturing Co. have voted at a special meeting to increase the authorized capitalization to 600,000 shares from 350,000 shares, according to H. N. Mallon, president, who reported that shareholders also authorized the
Dresser Industries, Inc,
CANDLES GO OVERSEAS mes Special CHICAGO, oot. 17—8tandard Oil Co. of Indiana revealed today that because of increased demand for candles by the armed forces the candle shops at its - Whiting, Ind., fefinery are temporarily discontinu.
ing production of many candles for|us included, in contrast, almost $1661
civilian use.
WAGON WHEAT
to the close of the Chicago market ur mills and grain elevators paid $1.60 per bushel! for No. 1
Up today, Indianapolis flo
red wheat (other grades on their merits); oats, No.
Ibs. or better, 64c; corn No. shelled, old crop, $1.09% per bushel
AUTOS—FURNITURE ‘DIAMONDS
BY AIR: $235
minutes—and from Boston to Paris,
tor division of the Radio Corp. of
The board also directed that a
2 white or No. 3 red, testing 33 2 yehow
and No. 2 white shelled. old crop, $1.24%.
TURNED TO LOSSES ANNUAL TOTAL WW BILLIONS
FACTORY PAYROLLS ie DECLINED SHARPLY
. WEGKLY TOTAL IN MILLIONS -
Bi
A
-® odbad
or sew - O
1
ss
The charts Shoves prepaiod 0 he OFA, are Intended’ sraphically 10 pastroy this sry of thie’ gov: ernment’s efforts to curb price inflation during this war to avoid the disastrous price collapse that fol-
lowed world war I.
Upper chart shows difference in degree of price rise between the two wars. Lower
chart shows the sharp drop in ‘business profits, workers’ wages and farmers’ income after world war L
Canada Seeks World Trade
To Provide
Post-War Jobs
(Second of a Series)
By 8. BURTON HEATH NEA Staff Writer
London, $259.05; Boston to London,| orTAwA, Oct. 17.—All Canadians in and out of the government
are convinced that Canada will not achieve “full and complete employment” after the war unless she can vastly increase her export
business. Aside from purely
reconstruction-period problems, the
Mackenzie King government's. planning on post-war reconversion and
re-employment leans heavily upon
world trade.
buy from abroad if she is going to sell to other na-
full understand. ing of the political implications, it is convinced _ that only through Heath an intelligent but courageous revamping of the international tariff structure can Canada realize the full benefits of her war-born industrial adulthood. World markets must be found in competition with the factories of the United States, the United Kingdom, and eventually of European
A countries which for the time being are cut off from international |ftchison
Hae. Would Emulate U. 8.
30rg-Wi Responsible Canadians go off the{c terpillar 1 record on this point. But their re- [Shes & Ohio
action to the question of industrial
competition with the U. 8. is very Du Ge
forthright. “Give us the markets to support mass production and there is no reason why we cannot. manufacture
almost anything as good—and as | En
cheaply—as the United States. We might even make it a little cheaper. Even before the war, when industry was much less important to employment up here than it is now, one-third of Canada’s manufactures were for export trade. If any sub-
ar stantial proportion of the do-|{Pen
minion’s new plant is going to be kept operating, to give work to the million new persons who have been brought into the manpower pool, much more than a third of future
production will have to be sold So
abroad, Exports Jump
The difficulty of the problem that this poses. becomes more apparent when one studies the make-up of the pre-war export business and contrasts it with what must be distributed elsewhere in the future. Even in 1939, Canada, with less than one per cent of the world’s population, was the fourth largest exporting nation in the world. Her per capita exports exceeded those
of the United States, the United |3o:
Kingdom or Germany. They were —whisper it gently—four times as great as those of the U, 8. But they consisted almost wholly of raw or only semi-manufactured products. Of a total of $1,178,954,420 in 1940, about $731,000,000 was in animal and vegetable products, wood and wood products (including paper), and a great deal of the
rest was in fibers, metals and min- L
erals, Must Find Outlets
The exportation of manlifactured
changing of the company’s name to| products lof the more profitable
types was small. To the United States, for example, Canada sent
ufactured rubber goods, farm implements, automobiles and trucks and parts, and miscellaneous iron products, That was not enough to pay for the rubber she imported in an unfinished state from the U. 8. The remainder of her exports to
millions worth of wood products, almost $52 millions worth of food-
stuffs, almost $66 millions worth: of |;
non-ferrous metals and non-metal-lic minerals, more than $44 millions
products.
Canada has to continue finding outlets for these raw and semimanufactured items. But, if she is to give work to her citizens, she must also build up outlets for the
automobiles and trucks, the radios, |orea
the electrical goods, the clothing the hundreds of finished items that her war-production machines and tools will make if they are given opportunity.
Wants Some ‘Breaks’
forced after the war. But Canada thinks there are certain items — enough to keep even her enlarged plants busy—that in free competition she can make better and cheaper than the U. S. or the United Kingdom. There are others
compete. She hopes that some international arrangement, probably including tariff realignments, can be
{worked out so that she can share
in post-war international trade without cut-throat competition
against her bigger friends.
- N.-Y. Stocks
worth of chemicals and animal
Phbbb Rl IE
Biscuit Nat Distillers ,. : 3 ntral .. 18% 598
HEE IHF H+] CESAR FAS WEE EE EE
Std Brands . Std O Cal Std Oil (Ind).. Std Oil (N J).. 20th Cent Boxe 25 U 8 Rubber... U 8 Steel Warner Bros .. Westing El .... Zenith Rad ..,
4:
+:
. 41 41
LOCAL ISSUES
Nomina! quotations furnished by Indianapolis securities dealers.
Agents Fin Corp ve Agean Fin Corp Pld « ceve Stk Yds com. Belt 5 Stk Yds Didi Bobbs-Merrill Bobbs-Merrill a TO
ook Drug Co. 16%a Home ok Pt. Varnes 1% | Si *Ind Asso Tel 5% Pp ie Ind Gen Serv Indpls P & L bid’ Ind P & L co Indpls Railways. Som oe . Indpls Water Indpls Water 12 a. com. eff Nat Lif
2 3 Mallory 4%2% R Mallory J tom IN Ind Pub Serv 5% . Pub Serv Ind 5% a Serv of Ind com T
{less than $3,000,000 worth of man- onl
Algers Wins'w RR $%%. cesans American Loan 55 51 ... oe American Loan 8s 38, Ch of Com Bldg 4%s 6 Cliseta Ind Tel 4%s o. Con Fin bs Ind [nd
a! . Trac Term Corp Bs 57 ....... U 8 Machine Goro bs *Ex-dividend.
LOCAL PRODUCE Sy preed hens, 32. Vester 3a hens, ol rh wa $oariea rocks aie: “sok old Fosters, Con Phe, We, Lar we; Fade To 36¢; Face : Butter Ne No, ST Soc: Butterfat—No. L 9c; No. 2, 36c 15 AIRLINERS ORDERED CHICAGO, Oct. 17 (U.
in which she realizes she cannot]
§EEve $858
i
: Pr ln
~., | Common—
P.)~
10,000 PORKERS RECEIVED HERE
Top Remains at $14.80 as Prices Are Unchanged At Stockyards.
Hog receipts amounted to 10,000 head at the Indianapolis stockyards today, the war food administration reported.
"good to ‘choice 120 to 240-pounders. Receipts also included 1600 cattle, 800 calves and 2000 sheep. |,
A— GOOD TO CHOICE HOGS (10,000) 140
Mw g
oman s 3] sesssuts
!
§
14.0 14.0 14.0 140
14.00014.05 [email protected]
« 1200013.7
#8 £
18.50 -« [email protected] «+ [email protected]
000 . 1100-1300 a « [email protected]
1300-1500 POUNES + vsessrenase « 14.35
vers 14.50016.78
11.25Q14.25
11801650] -15.50Q 16.78 - 14.00018.38| 5; 14.00@15.
500- 900 POUNAE suviensasranse
Cows (all weights)
Bulls (all weights)
Beef— Good al} weights) weeeeees Sausag
Cutter or and ‘common .. : CALVES (808) Vealers (all weights) Good to choice
Feeder and Btocker Cattle and Calves Steers
800- 800 pounds ....ceveee «« 11.50018.78 50.1000 Pounds cere [email protected] G
ood. 500 "800 pounds ascassssnnese 10 10.50 1000 pounds ... sev 10 11.78
500- 900 1.500 8.78 Calves (steers) >
Good and Choice— 500 pounds down ........... [email protected]% Medium—
dovn ...eenecanes [email protected]
[email protected] SHEEP AND LAMBS (2000) Ewes (shorm)
good to choice Common to medium
Good and Shales +
Medium and goo . [email protected] Common
As Mrs. John Morrison stooped over a chair to fix the cushion, a bullet crashed through a window only a few feet from her at her (to
.|second story apartment at 1230 W.
31st st. last night. The bullet apparently was fired by some one from the outside stair-
a LL leading to the apartment.
_ Police failed to find any trace of {5 the gunman and neither Mrs. Mor-
“|rison nor her husband could provide islany clue as to the identity of any
person who would shoot at them.
BLAST FLYING BOMBS LONDON, Oct, 17 (U.
that anti-aircraft guns fired their “heaviest barrage of the war” at
planes over the orp sea last night,
ALLISON WINS 2D STAR A second white star has been won for thie army-navy “E” award
Motors Corp., Manager E. B. Newill announced today. The original
a 18.50
agent, tal stock; Ral FPrush
9.00011.35] 9 sha
ou [email protected] 1.75@ 9.75 |
uw (WOMAN ESCAPES ™, 4 UNEXPLAINED SHOT
wi PY Coastal watchers reported today Mathews
German flying bombs released from |[L° Bar value: John Pe
Concerns Plan to Use ~ Magnesium.
tumer items “big and small.” More Costly
metal-chum, aluminum,
up for the additional “However,”
ticularly die castings, will
a price basis, for some items.” Free of Controls
supply of ocean water,
Incorporations
819 Vine st., Evansville; sam 3
11.80 | radio.
y n T. 00 Hong without Detehon, Mildred M. Northern Indiana Realgas Serv Pos; a: Shange of 35 agent to Mary L. ey x Peru “Bie Lines, Inc., South Bend of agent to Cl to Claude EB. Nicely, 2008
er, Blanche J.
ent to Horace
bine 8; ange Weighs Ir Jr, 129 c
Woodruff Hayes & Co, SOTpOTAtion; withdrawal city: preliminary dissolu Bresce
increasing thorized capital to 5000 shares Aw par value. Mid-West Paper & Envelope Co., Marion: acceptance of provisions Corpora
res of $20 par value, Clay Horn, Inc, 519 Wabash ave, Terre Hvis,
address;
and furniture; Clay Horn, M. L. Laubach, Evan John
Inc., 3884 Carson ave, capital stock; EB. KE. Ross, J
na M. Martin. ese Inc., 101 B Sycamore ave, Kokomo; agent, Palmer Bdward address; 110 retail Jew:
same value;
Ass'n, Inc. Lagro; no cs) EB. ae George
0 Cemetery J. Warner Lawson, our, M Thomas. The Inland Corp.
theater and amu D. Mader, M. F. Morlan ers. Po Manufacturing Co., y Bend;
1052, agent, "James
turing rt; agent, ‘Charles E
o ithout par value; A 1 Le ui eo a Charles E. Taylor Harry E. liam E. Haselwood.
ment, etc.;
ox incennes; amendment cha to William Yashington; nereasing x i Sy 1000 Class A of }
i ff
no par value and’ ig other amendments,
* carry and
Ee
5, Insurance ency, Inc.
at the Allison division of General]
Though costs of magnesium— called industry’s jightest structural metal--and its slightly heavier are stiil more costly than other metals, the Dow metallurgist asserted that “the saving in weight” more than makes
expense. Mathes said, “automobile manufacturers, as an example, hesitate to pay a premium for anything that will be reflected in an increased selling price for their cars. “But we foresee the day when the|: consumer will insist either on a lighter car or on so many improvements, such as air conditioning, that
before that day the further perfection of fabricating methods, par-
light alloys strictly competitive, on
Magnesium, incidentally, is now free from government control in all its forms and is immediately avail-
Electronics Research, Ine.; of Evansville,
w 3 par value; John T. . Mlk
; change Miami
snd Fie Fletcher Realty Corp., Indianrkét st. de Ine, Ilinois City Terminal, Ine, Michigan tion.
: New u- | Adolph Miller Products Co., Provi-
of the 1929 901 fo Poe ent Pe Shateiss elope Co bam ‘es aper v or 30,000 sha agent, oon Horn, same ‘shares of § manufacturing and sing office supplies Marion County Rabbit Breeders’ Assn.
napolis; no Hotopp,
Gevirts, shares’ of $100 par elry | business; Palmer Edward Gevirts, Helen 8. Sprits, Irvine 8. Sprits. sesssacrenses [email protected]%
Middaugh, Wilbur H, |Expen 3458 Michigan ave. ta,
Edward L. VolIne, P. O. Box y th Bend; |pepy
Pow! E. Washington, ul Fevers 300 of $10 par hue SH = of com-
st., Eikha: EB. odo. sh 1804 E. Jackson blvd. Elkhart: common
ol Advertising Club
To Hear Fisken
Mind PA CLAIMS LIQUOR
facturers “with eyes on the postwar. market” and “with knowledge that consumers want better and easier to handle products” are. al-
BLACK MARKET GONE
WASHINGTON, Oct. 17 (U. P.) — Price Chief Chester Bowles reported today that the multi-million dollar liquor black market has virtually been “wiped out” and that liquor
ing through legitimate trade channels.
‘Bowles said the black market operations were curbed by OPA in.
state liquor agencies and local and state ‘police. During the first seven months of 1944, he said, the campaign resulted in 190 convictions and more than $1,000,000 in fines and settlements. While black marketers are no longer a “major problem,” Bowles said, members of some racketeering rings are still at large and enforcement officers “are still devoting considerable time to problems the illicit traffic caused.”
Artificial Limb Factory Sought
' MINNEAPOLIS, Oct. 17 (U. P.) —Dennis R. Scanlon, Russian . government representative, revealed tentative plans today for construction of a $1,000,000 plant here for manufacture of artificial limbs for Soviet soldiers and civilians. Scanlan said the tentative proprobably
which has no facilities for manufacturing them in mass production.
An alternative program, he said, would provide for Russian technicians to come here and learn processes used at the Minneapolis Arunsisl Lib Cu now operating at capacity on ae Hm which eve boon approved by the U. 8. army.
|CANCEL CONTRACTS ON JEWEL BEARINGS|
WASHINGTON, Oct. 17 (U. P.) — The war production board announced today that increased jewel bearing imports from Switzerland have forced the Defense Supplies Corp. to terminate contracts with two small manufacturers — the
dence, R. I, and Louis Levin & Sons, Inc., Los Angeles.
the John Worley Jewel Co. Waltham, Mass, have been notified that
cut back in the near future,
U. S. STATEMENT
WASHINGTON, Oct. 17 (U. P.)—Gov-
year Lagro; pared with a year ago:
This Year Last Year
sen ..$27,729,486,757 $25,575,037.508 War Spending 25,061,971,063 707.685.9
. 1,538,712, Net Deficit” . 714,
Tes
The CHICAG
146 E. WASHINGTON ST.
Glas Loy
gente
with roer, wil-
Corp., “Vin en principal eftice and agent Gin, 308 Walnut ts 00 par value
, Ine, Illinois corporaon the business dealer
ZimmerRoth, Marion C.
217 Ww. John
65 Tain. avon all ager of the Chevrolet division of
Dow Official Says Many
No contract with any large manu- | c.. \facturer has been canceled as yet,| WPB said, although the Elgin Na-| tional Watch Co. Elgin, Ill, andi 8
their contracts probably would be
Plea of Carriers, Cites Big | . Profits. , :
WASHINGTON, Oct. 17. w. Po. —The interstate commerce
SEPTEMBER APPLE CEILINGS EXTENDED
Clothing, Shotguns, Ete. JEWELRY Co. Ine."
3(d41) GRY It
| SAXOPHONE ; (a |
=
iH
thats Ail dss £2
£218 » ay
i! PERSONAL LOANS For Prompt, Friendly Service Call, Write or Phone MA-1788
pr Estates Loan Company, Inc. 912 Kahn Bldg. Hs ~ Mer. & Wash. 3 In the Heart of the Business District
award was made in A 1943, During the war co-ordinating . pel :
committees have scheduled production so that Canada, the U. 8. and the United Kingdom each made
Fifteen additional Douglas DC-6 airliners have been ordered by United Air Lines, bringing the total| |} ; planes on order with Douglas for what "it could produce most effec- post-war service to 50, Presidefit || tively without wasteful competi- W: A Patterson announced today. | Hn or duplication. : In democraicies, such managed in: anenlens, ne., veh chaney am] economy cannot be en- 33; Is
Shy PUI.